Should i pay an annual fee for a credit card from Cap One?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
5 posts
khaos
Green Member
Green Member
 
Posts: 20
Joined: Thu Oct 20, 2011 3:51 am
Location: Orlando

Should i pay an annual fee for a credit card from Cap One?

Postby khaos » Fri Apr 06, 2012 10:41 am

Hey All!

So here's my situation, yesterday I got an offer in the mail from CapitalOne for the regular Platinum MasterCard. Now the offer stated based on my credit screening I was getting this offer and it also stated that it had No Annual Fee but on the website it says $0 for the first year and $19 thereafter.

I currently have a credit card with a credit union & although it doesn't have a rewards program it was my first credit card so I wasn't in a position to be too picky. I have been rejected for the Discover More(recently) and AMEX Blue Cash(6 months ago), and currently I have applications that are pending with Chase (Freedom) and Citi (Dividend) in their 10 day waiting period. If I get rejected from both then I am going to wait atleast another 1 year till I apply for my next card.

Now with that being said I eventually want to acquire a Discover More/Amex Blue Cash Everyday card. Reading here on the forums I have seen people suggesting that these lenders prefer to see a few years of credit with several credit cards. My question is do you think going with this Capital One offer would be putting me on the right track or am I better off waiting for a couple of months and see if Capital One offers me anything in their Cash Rewards program?

The $19 fee doesn't seem reasonable as my credit union card is free although I am just trying to figure out if being associated with a bank like Capital One would look better on my records to future lenders? Or do you reckon I call them up and tell them I am interested in their Rewards cards instead, has this worked for anyone?

Any help/suggestions would be appreciated. Thanks


Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Fri Apr 06, 2012 11:17 am

Remember FICO scores are blind to the banks issuing them. You are on the right track though. Having 2-3 credit cards will really help you in the future. My personal recommendation though is to look at some more credit unions or other institution that aren't "prime" lenders (ie lenders looking for high FICO scores only). Do not apply unless you feel you have a VERY good chance to get accepted. Your wasted hard inquiries are harming your credit to no effect.

If you can get me a current FICO or FAKO, that would be helpful. Your short term goal should be to get 1 or 2 cards that have no annual fee to help build up your credit. Maybe a credit card and store card. If you get Walmart, you have access to their free TU08 score.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

namvet
Centurion Member
Centurion Member
 
Posts: 140
Joined: Mon Dec 26, 2011 4:17 pm
Location: Texas

Postby namvet » Fri Apr 06, 2012 11:20 am

IMO the Cap One card will help you establish more credit. Calling them won't be productive. Future credit line increases are limited but the card will do it's job in helping you get better cards in the future. Take your time and build some history before apping for more credit.

khaos
Green Member
Green Member
 
Posts: 20
Joined: Thu Oct 20, 2011 3:51 am
Location: Orlando

Postby khaos » Fri Apr 06, 2012 12:13 pm

Crashem wrote:Remember FICO scores are blind to the banks issuing them. You are on the right track though. Having 2-3 credit cards will really help you in the future. My personal recommendation though is to look at some more credit unions or other institution that aren't "prime" lenders (ie lenders looking for high FICO scores only). Do not apply unless you feel you have a VERY good chance to get accepted. Your wasted hard inquiries are harming your credit to no effect.

If you can get me a current FICO or FAKO, that would be helpful. Your short term goal should be to get 1 or 2 cards that have no annual fee to help build up your credit. Maybe a credit card and store card. If you get Walmart, you have access to their free TU08 score.


Thanks for the responses. My Transrisk score from Credit Karma was 702 which I believe is calculated through Transunion, I am just trying to evaluate if the Capital One card is a good option as there are many limitations such as credit limits are low and the increases are hard to come by.

Whereas my credit union card has a good limit on it which enables me to use around 25% of it and at this point honestly the only thing missing for me is a cash/points rewards card. I would only consider CapitalOne if it opens up opportunities for me in the future. As suggested here, that waiting is a good option and I agree but with that being said if I apply for a card a year later doesn't it affect the age of credit that I have?

andy1088
Centurion Member
Centurion Member
 
Posts: 156
Joined: Wed Nov 30, 2011 8:23 pm
Location: New Jersey, United States

Postby andy1088 » Sat Apr 07, 2012 8:29 am

I guess I got lucky with Discover. After 8 months of near-perfect credit history (no late payments, no baddies, low usage<20%) Discover approved me and gave me a 1K credit line. I also around the same time got approved for a Citi platinum select mastercard (no rewards but 18 months 0% which is nice). I would suggest not to apply to so many cards at once and wait. I made the dumb mistake in November/December of applying for Chase Slate, Bank Americard rewards, Discover and Citi. I took 4 hits and came out with only two cards (thankfully IMO the best of the two), but I had to wait until now to apply again (got a Freedom) and am going to stop applying and just get credit line increases as they come.
My cards
Chase-Sapphire-$5,000 Freedom-$3,000, Amazon rewards-$700, Slate-$600
Citi- Diamond Preferred-$4,000, Thank you-$2,500
Discover IT-$2,500
Bank of America cash rewards-$2,000
Capital one newcomer rewards-$500



Return to “Visa & MasterCard”

Who is online

Users browsing this forum: No registered users and 1 guest